SOUTH WALES INDUSTRIAL / WAREHOUSE FREEHOLD INVESTMENTAVON RUBBER | WRGANT PLACE | MAERDY | SOUTH WALES | CF43 4DE

MAERDY | SOUTH WALES | CF43 4DE

INVESTMENT SUMMARY• Freehold manufacturing and warehouse facility.

• Located 18 miles north east of Junction 32 of the M4 motorway, 16 miles from Junction 34 and 17 miles from Junction 35.

• Site area 15.96 acres (6.46 ha) with a low site cover of only 23.41%.

• 176,288 sq ft (16,377 sq m).

• Let to SPC Europe Ltd until January 2030, subject to a rent review in January 2025, and to Avon Engineered Rubber Ltd until March 2027,subject to a rent review in November 2021 and 2026.

• Weighted average lease length in excess of 10 years to expiry and over 5 years to breaks.

• There is a strong occupational story with Avon Engineered Rubber Ltd who has been in occupation for circa 11 years and has invested heavily in updating their onsite equipment and adapting their fit out.

• SPC Europe Ltd has also made significant investment in their new ultra-clean colour rubber compounding plant since taking occupation.

• 63,963 sq ft (5,942 sq m) currently vacant, offering potential to materially increase income.

• Total current rent of £337,500 pa exclusive, equating to £3.00 psf.

• Offers invited in excess of £3,940,000, reflecting an attractive net initial yield of 8.00%, a potential reversionary yield of 12.58% and a very low unit capital value of £22.35 psf (£240.57 psm) after allowance for purchasers costs of 6.81%.

MAERDY | SOUTH WALES | CF43 4DE

LOCATIONMaerdy is situated in South Wales approximately 22 miles northwest and 45 minutes drive from the Welsh capital Cardiff.

Access south to Junction 32 of the M4 motorway is approximately 18 miles via the A470. Junction 34 of the M4 Motorway is 16 miles south and Junction 35 is 17 miles distance. Pontypridd is 9 miles to the south, Port Talbot is 26 miles and Swansea is 34 miles west. The M4 provides easy access to Swansea to the west and Bristol and the M5 to the east.

MAERDY | SOUTH WALES | CF43 4DE

DESCRIPTIONThe property comprises a manufacturing and warehouse facility constructed in 1997 which is sub divided into 3 units together with first floor office accommodation.

The site area is approximately 15.96 acres (6.46 ha) with a low site cover of only 23.41%.

The building is of steel portal frame with concrete floors and insulated corrugated steel cladding. The roof incorporates approximately 10% translucent roof lights. The eaves height varies from 5.8 m to 7.4 m.

The property comprises two principal bays with a high bay rear element which has ground, first and second floor manufacturing/ warehouse accessed via two large industrial lifts and a substantial staircase.

In addition, the property has first floor office accommodation and an impressive double height reception area.

Externally, there are two road access points into the site providing circulatory access. There are excellent loading areas, both to the front and rear, and a separate large car parking area to the front of the property.

MAERDY | SOUTH WALES | CF43 4DE

UP

Unit D Unit C

Unit B

Unit E

includes first and second floors in part

ACCOMMODATION & TENANCY SCHEDULE

Area Area sq ft(Area sq m) Tenant Rent £ pa

(Rent £ psf)

Lease Start Date

Lease Expiry Date

Rent Review Dates

Unit B & E 54,334 sq ft (5,048 sq m)

SPC Europe Ltd

£150,000 pa(£2.76 psf)

13 July 2018

31 Jan 2030 (1)

31 Jan 2025

Unit D (incl. reception area)

57,991 sq ft(5,387 sq m)

Avon Engineered Rubber Ltd

£187,500 pa(£3.23 psf)

5 Nov 2016

31 Mar 2027 (2)

5 Nov 2021 and

2026

Unit C (3)

50,446 sq ft(4,686 sq m) Vacant - - - -

Unit A - First Floor Offices (3)

13,517 sq ft(1,256 sq m) Vacant - - - -

Totals 176,288 sq ft(16,377 sq m) £337,500 pa

(1) SPC Europe Ltd have a Tenant Break Option on 31 January 2025.

(2) Avon Engineered Rubber Ltd have a Tenant Break Option on 5 November 2022.

(3) Unit C and the First Floor Offices are currently vacant. The vacant accommodation has an ERV of £191,900 pa,

based upon a rental value of £3.00 psf. The total ERV of the property is therefore £529,400 pa. The vacant Unit C

adjoins Unit D.

Further information available on request.

Indicative Plan Only

MAERDY | SOUTH WALES | CF43 4DE

TENUREFreehold.

TENANT COVENANTAvon Engineered Rubber (AER) are part of Avon Group Manufacturing (Holdings) Ltd. They have been on site since 2007 capitalising on the low cost of rent and business rates as well as an available and low cost labour force. Their Maerdy facility provides state of the art rubber mouldings and extrusions to the automotive industry including BMW, Bentley, Jaguar Land Rover and VW. The Company is also one of only two worldwide suppliers of lathe cut washers to the 13.2 billion unit international aerosol industry. For further information see www.avon-group.co.uk.

SPC Europe Ltd operates a new ultra-clean colour rubber compounding plant. Further information available at www.spc-group.com.

Both companies have recently invested significant sums in refurbishing their facilities and installing new plant and machinery.

The financial performance of the tenants is positive:

Tenant D&B Rating

Turnover to31 Mar 2017

ProfitBefore Taxes

Tangible Net Worth

Avon Engineered Rubber Ltd 2A 2 £10,674,672 £648,855 £1,642,862

SPC Europe Ltd 2A 1 £20,752,384 £947,975 £5,989,118

D&B financial Reports are available on request.

Information on both companies is available at www.aerlimited.co.uk and www.spc-group.com

Collects

Collects

AfonRhondda

Fach

Spring

Paddling Pool

Issues

SpreadsIssues

314.4m

296.6m

298.1m

307.8m

Tanks

(Telecommunication)Mast

Track

Tr ack

Post

WRG

ANTPLACE PARK

PLACE

ROAD

WOOD STREET

SPRINGFIELD

MO

NAPLACE

Sub StaEl

Shingle

Play Area

ETL

20

38

Mount View

12

50

10

54

7

25

El Sub Sta

7

8

4

20

12

9

8

5

2

13

32

3

Water Works

5

49

1

1

13

49

9

11

1

11

8

Factory

146

28

50

18

Tank

6

Shelter

14

Tank

300.4m

A4233

Drain

TankChy

Track

Path

(um

)

Cwm Rhondda Fach

El SubSta

CG

Tank

0m 25m 50m 75m

Wrgant Place, Maerdy, Ferndale, South Wales, CF43 4DE

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:2550

MAERDY | SOUTH WALES | CF43 4DE

INVESTMENT COMPARABLES

Date Property Size (sq ft) Tenant Price Capital Value NIY

Subject Property – Wrgant Place, Maerdy, South Wales, CF43 4DE

176,288 sq ft

Avon Engineered Rubber Ltd

SPC Europe Ltd

OIEO £3.94m

£22.35 psf

8.00%

Apr 18Honey Lane Industrial Estate,Grantham

218,700 sq ft Multi-let 5 tenants £7.76m £35.48

psf 8.70%

Dec 17Christopher Grey Court Llantarnam, Cwmbran, NP44 3SE

61,569 sq ft Spear Group Holding Ltd £3.655m £59.36

psf 7.37%

Dec 17 H1 Street, St Modwen Road, Plymouth PL6 8LG 65,930 sq ft Invensys £4.29m £65.07

psf 7.40%

Nov 17 Dominions Way Trading Estate, Cardiff CF24 1RF 94,880 sq ft Multi-let £5.837m £61.52

psf 7.25%

Sep 17The Old Tea Factory, Weston Road, Crewe, CW1 6BP

345,563 sq ft

Bargain Booze Ltd

Brightstar

20:20 Ltd

£10.4m £30.10 psf 9.21%

MAERDY | SOUTH WALES | CF43 4DE

MAERDY, SOUTH WALES CF43 4DE

MARKET COMMENTARY

The UK industrial and warehouse market is in a very positive phase at the present time. There has been a strong start to 2018 with the following key statistics for leasing and investment in the sector:

Leasing• Q1 2018 take-up reached a record-breaking 9.8 million

sq ft, the highest Q1 on record.

• Activity was driven by an unprecedented uptick in demand for Grade A units which accounted for a 75.4% of total take-up.

• Speculative development picked up in Q1. Six units, totalling 1.38 million sq ft completed over the first three months of the year with a further 26 units totalling 5.50 million sq ft currently under construction across the UK.

Investment• Mirroring the occupational market, investor appetite

for industrial assets surged in Q1 2018. Property Data reports transactional volumes were propelled to £1.96 billion. This constitutes a record breaking Q1 2018, 17.1% ahead of the £1.67 billion transacted in Q1 2017.

• MSCI annualised monthly capital growth (12 months to March 2018) shows all Industrial Property reached 15.5%, with the South East Industrial sector at 19.6%.

• The prime yield in the sector as at Q3 2018 is c.4.0%

ENERGY PERFORMANCE CERTIFICATE

The property has an EPC rating of D 93.The EPC Certificate is available on request.

VAT

The sale of the property will be treated as a Transfer of a Going Concern (TOGC) for the purposes of VAT

PURCHASE PRICE

We are instructed to seek offers in excess of £3,940,000. A purchase at this level reflects an attractive net initial yield of 8.00%, and a potential reversionary yield of 12.58% after allowance for purchasers costs of 6.81%. At £3,940,000 this represents a very low and attractive unit capital value of only £22.35 psf (£240.57 psm).

FURTHER INFORMATIONTo arrange an inspection and for further information please contact:

SUBJECT TO CONTRACTMisrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.

www.kubiakcreative.com 182940 10/18